Coin Grading Explained – MS, XF, VF and What It All Means

Every coin carries a story. Some whisper of trade along the Silk Road, others echo the propaganda of long-gone empires. But the physical condition of a coin affects how clearly that story is told—and how much someone is willing to pay to hear it. Coin grading, at its core, is a system of storytelling. It allows us to quantify the wear, detail, and eye appeal of a coin, and it creates a common language between buyers and sellers.

Before standardized grading, descriptions like “nice,” “worn,” or “near perfect” led to disagreements and disputes. What one collector considered “very fine,” another might see as “average.” That changed in the mid-20th century, particularly with the rise of third-party grading services and the adoption of the Sheldon scale, a numeric system ranging from 1 to 70. Suddenly, coins could be evaluated with far greater consistency. But while numbers brought structure, the alphabet soup of grading—MS, XF, VF, AU—continues to perplex many.

The Sheldon Scale, named after Dr. William H. Sheldon who developed it in 1949 for grading U.S. large cents, is now used across the world for grading most coins. It runs from 1 (a barely identifiable scrap of metal) to 70 (a flawless, mint-state coin with no visible imperfections under magnification).

But Sheldon’s numbers are rarely used in isolation. They are typically paired with letter grades that describe a general condition category—Poor (P), Fair (F), Good (G), Very Fine (VF), Extremely Fine (XF or EF), About Uncirculated (AU), and Mint State (MS). Each of these categories can include subgrades: for instance, VF-20 or VF-35, indicating where a coin falls within that broader bracket. In the case of Mint State coins, the MS scale alone runs from MS-60 to MS-70, offering a more nuanced view of perfection.

These combinations form the heart of modern coin grading—and understanding them is key to navigating the collector’s market with confidence.

The MS, or Mint State, designation represents coins that have never been in circulation. In theory, they are in the same condition as when they left the mint. But even uncirculated coins can vary significantly in appearance. That’s why Mint State grades span from MS-60 to MS-70.

An MS-60 coin may be uncirculated, but it could still show multiple contact marks, weak strikes, or spots. An MS-65, often described as “Gem Uncirculated,” will display a sharp strike, vibrant luster, and only a few minor flaws. And then there’s MS-70—the numismatic holy grail. A coin graded MS-70 is deemed flawless under 5x magnification. It is perfect in every visible respect. But such coins are exceedingly rare, especially for earlier issues, and even among modern mintages, reaching 70 is far from guaranteed.

Mint State coins are particularly popular among investors and modern commemorative collectors. They also tend to command the highest prices in the market, even for relatively recent coins, if the grade is high enough.

Just below Mint State sits AU, or About Uncirculated. These coins show minimal wear, usually just on the highest points of the design. An AU-58 coin might look virtually indistinguishable from an MS-60 to the naked eye, but the tiniest trace of friction is enough to lower the grade.

Collectors often pursue AU coins for historical issues where true Mint State examples are scarce or astronomically expensive. For example, a Roman aureus in AU condition still tells its story with near-complete detail, but at a fraction of the cost of an MS specimen. AU coins offer a sweet spot: visually stunning and nearly pristine, but without the intimidating price tag of higher MS grades.

Extremely Fine (abbreviated XF or EF) is the grade where wear becomes visible, but detail is still very high. An XF-40 or XF-45 coin will show noticeable friction on high points like hairlines, drapery folds, or shield surfaces, yet the major elements of the design remain crisp and well-defined.

At this level, coins have clearly circulated but have avoided the rough-and-tumble fate of pocket change. Think of an XF coin as a well-preserved relic from daily life—a silver coin that changed hands in a bustling market but was quickly stashed away rather than left to the ravages of time. XF coins are highly collectible, especially when dealing with older or rarer issues where anything above VF is scarce.

A VF, or Very Fine, coin has been well-used, but it has not been abused. Most of the coin's major features are still sharp, though finer details have been worn smooth. A VF-20 might show flattening across broader surfaces like cheekbones or laurel leaves, while a VF-35 might retain inner design details like facial features or texturing.

VF coins are often the lowest grade collectors will accept for coins of moderate rarity. They strike a balance between affordability and completeness. You can still identify the design, enjoy most of the legend, and feel connected to the coin's past. For historical enthusiasts, a VF coin is not degraded—it’s simply one that lived a full life.

As we move down the scale, we enter grades where heavy wear dominates. Fine (F), Good (G), and About Good (AG) coins have seen significant circulation. The detail has mostly eroded; lettering may fade into the rim, facial features blur into smoothness, and once-ornate patterns have become ghostly outlines.

Yet, these grades don’t signal worthlessness. Far from it. For certain ancient or early modern coins, even a G-4 specimen can be a prize. A Good-grade coin from the 18th century or earlier may be the only affordable way to own a genuine piece of that era. And some coins are so rare that any condition, even a barely readable one, is historically and financially valuable.

Collectors of these grades often value authenticity and accessibility over aesthetics. A well-worn coin can still ignite the imagination—sometimes more so than its polished counterpart.

While grades give structure, they don’t capture everything. Two coins of the same grade may look dramatically different due to “eye appeal”—a subjective factor that includes toning, color, strike quality, and overall aesthetics.

For example, a darkly toned AU-55 coin with weak strike might look dull compared to a lustrous AU-50 with bright surfaces and a strong strike. Collectors often pay premiums for coins that “look better than the grade,” and some even specialize in such pieces. This is where art meets science—grading captures condition, but it’s the beauty of the coin that captures hearts.

Strike quality, particularly in older coins, can also influence desirability. A sharply struck VF coin might show more detail than a softly struck XF of the same type. Luster—the way light reflects off the surface—also plays a key role in modern grading, especially for Mint State coins. A coin can be technically high grade but visually unimpressive if luster is lacking.

In the modern numismatic world, major third-party grading services like PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Company) have become essential players. These firms offer standardized, professional grading with sealed holders (“slabs”) and unique serial numbers. A coin in a PCGS or NGC slab carries greater market confidence—it’s a known quantity, trusted by buyers and sellers globally.

These services also help prevent fraud. When high-value coins are authenticated, graded, and encapsulated, it becomes far harder to tamper with them or pass off counterfeits. Grading also facilitates online trading, where buyers can't inspect coins in person. The sight of “NGC MS-65” or “PCGS VF-35” provides assurance, even from thousands of miles away.

Still, some collectors prefer “raw” coins—those without slabs—because they enjoy handling their collection directly or feel confident in their own grading skills. The debate between slabbed vs. raw is a lively one, but grading standards help unite both worlds under a shared language.

While the Sheldon Scale dominates U.S. and modern coin grading, grading ancient coins follows a more nuanced path. Because ancient coins were often struck by hand and endured wildly different environments, most experts use simplified grades: Choice VF, XF, AU, and so on. But factors like centering, strike, patina, and surface quality weigh heavily.

For example, a well-centered Roman denarius with full legends may be more desirable than a higher-grade coin with a poor strike or off-center flan. Greek, Roman, Byzantine, Islamic, and Chinese coin collectors often rely on specialist dealers, auction house reputations, and detailed photographic study more than rigid scales.

World coins—especially pre-19th century issues—also present challenges. Grading standards can vary by country, and context matters. A Spanish colonial cob in VF might be a gem, while a British Victorian penny in the same grade could be considered merely average.

Coin grading is part science, part art, and entirely central to the collector’s journey. It gives structure to a market filled with endless variation. It helps protect investments, fuels desire, and fosters shared understanding across generations and continents. Yet, grading should not overshadow the personal connection we form with the coins we collect.

Whether you’re admiring the untouched perfection of an MS-67 eagle, cherishing the honest wear of a VF Roman sestertius, or marveling at the survival of a 16th-century thaler in Fine condition, remember this: grading is a tool, not a verdict. It helps us measure—but it doesn’t define—the magic of the coins in our hands.

On MunzCabinet.com, we celebrate coins in all conditions, from freshly minted to timeworn treasures. Because behind every grade is a story—and every story deserves to be told.